More UK workers filling unskilled jobs

by Gill Plimmer - 11/01/2010

"The recession has forced more UK workers to take jobs formerly filled by eastern Europeans, according to Staffline, the blue-collar recruitment specialist."

The Nottingham-based company, which supplies unskilled labourers to many of Britain's larger supermarkets and food processing groups, said the percentage of its workforce from European Union countries excluding the UK had fallen from 68 per cent in 2008 to 50 per cent by the end of 2009.

Andy Hogarth, chief executive of Staffline, said: "There are lots of people willing to take on jobs they wouldn't have done a year or two ago. It used to be that Brits were too proud to do the less good jobs, but that is changing."

Demand for labour in the four weeks ahead of Christmas had been 20 per cent up on the same period last year, indicating that supermarkets had enjoyed strong sales volumes over the festive season.

But with unemployment continuing to rise, albeit at a slower pace, the recruiter said it did not face the usual struggle to find staff willing to work for just a week or two in the run-up to Christmas. "It's often hard to find workers at this time of the year but there was plenty of labour this Christmas, and about half were British passport holders," said Mr Hogarth.

Many recruiters have been hurt by the downturn as companies cut their workforces. But Staffline, which supplies 12,000 workers a day to industry, has been partially insulated by its focus on providing temporary workers to the food processing sector, which has held up better during the recession. About 80 per cent of Staffline's income comes from providing employees - most on the minimum wage - to the food industry, while 10 per cent comes from manufacturing.

In a trading update, the company said it expected full-year earnings to be in line with market expectations, revised upwards in November. Analysts forecast pre-tax profits of £3.5m in 2009 and £4.3m in 2010.

The company is eyeing further acquisitions following its purchase in November of Peter Rowley, which provides training for the government under its Skills for Life programme.

Ian Jermin, analyst at Merchant John East Securities, said: "Even though the recruitment market has been depressed, Staffline has proved more robust."

The shares remained unchanged at 78p.
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